Financial Technology Funding by Round – Q3 2017

The following two graphs summarize the rounds of funding going into the Financial Technology space. Please note these graphics are made using data through July 2017.

Financial Technology Funding Amount by Round
Financial Technology Funding Amount by Round

The graph above shows the total amount of VC funding broken out by round. In 2016, Series B funding has accounted for a substantial amount of total funding, with Series C and Late Stage funding coming in at second. In 2015, all types of VC funding accounted for approximately the same amount, with the exception of Seed funding.

Financial Technology Funding Count by Round
Financial Technology Funding Count by Round

The graph above shows the total count of funding events broken out by round. The general trend over the past few years has been a larger number of early stage funding events, such as Seed, Series A, and Series B funding events–and a diminishing number of events in the later stages.

We are currently tracking 2286 Financial Technology companies in 16 categories across 63 countries, with a total of $73.2 Billion in funding. Click here to learn more about the full Financial Technology market report.

Financial Technology Funding Trends – Q3 2017

The following graphs highlight recent trends in Financial Technology (fintech) startup funding activity. The graphics include data through July 2017.

Fintech Funding by Year Q3 2017

The above graph summarizes the total funding raised by Fintech startups for each year. 2016 has the most funding to date at around $19B.

Fintech Funding by Vintage Year Q3 2017

The above graph summarizes the total amount of funding raised by Fintech companies founded in a certain year. Companies founded in 2011 have raised the most funding just under $9B.

We are currently tracking 2,283 Fintech companies in 16 categories across 63 countries, with a total of $73 Billion in funding. Click here to learn more about the full Financial Technology market report.

Financial Technology Startup Market Trends and Insights  – Q3 2017

Here is our Q3 2017 summary report on the Financial Technology (fintech) startup sector. The following report includes a startup landscape overview, graphical trends with insights, and recent funding and exit events.

We are currently tracking 2,277 Fintech companies in 16 categories across 64 countries, with a total of $73 Billion in funding. Click here to learn more about the full Financial Technology market report.

Financial Technology Market Overview and Innovation Quadrant – Q3 2017

The following post highlights how Venture Scanner categorizes the Financial Technology (Fintech) startup landscape, and presents our Innovation Quadrant showing how those categories compare to one another. The data for this post is through July 2017.

Fintech Logo Map Q3 2017

The above sector map organizes the sector into 16 categories and shows a sampling of companies in each category.

Fintech Innovation Quadrant Q3 2017

Our Innovation Quadrant provides a snapshot of the average funding and average age for the different Fintech categories and how they compare with one another.

  • Heavyweights: These categories are comprised of companies that have reached maturity with significant financing.
  • Established: These categories are comprised of companies that have reached maturity with less financing.
  • Disruptors: These categories are comprised of companies that are less mature with significant financing.
  • Pioneers: These categories are comprised of companies that are less mature with earlier stages of financing.

The definitions of the Fintech categories are as follows

Banking Infrastructure: Companies that offer new ways for businesses to raise debt financing and have their credit risk assessed. Examples include peer-to-peer lending platforms, asset-based lines of credit, micro-financing, and big data risk analytics.

Digital Banking: Companies that allow consumers and SMBs to interface with banking services. Examples include Internet-only banking services and virtual credit cards.

Consumer Lending: Companies that offer new ways for consumers to obtain personal loans and have their credit risk assessed. Examples includes peer-to-peer lending, micro-financing, big data analytics, and consumer credit scoring services.

Consumer Payments: Companies that offer technology and services centered around payment issuers and consumers. Examples include mobile wallets, credit card aggregators, prepaid card innovations, and peer-to-peer payments.

Crowdfunding: Companies that provide new methodologies to raise non-equity and non-debt financing. Examples include crowdfunding platforms for products, social causes, and creative projects.

Equity Financing: Companies that allow private businesses to raise capital in exchange for equity and for investors to participate in private securities markets. Examples include crowdsourcing equity platforms and secondary market solutions.

Financial Research and Data: Companies that provide information services that enable investors to make better investment decisions. Examples include news, research, and data sources.

Financial Transaction Security: Companies that provide solutions to secure transactions, authenticate users, and prevent fraud. Examples include identify verification, big data analytics, and fraud detection algorithms.

Institutional Investing: Companies that help wealth managers, hedge fund managers, and professional traders manage their portfolios and optimize returns. Examples include tools for stock sentiment analysis, alternative investment platforms, and algorithmic trading tools.

International Money Transfer: Companies that allow businesses and individuals to send money abroad easily and cheaply. Examples include digital-only remittances, mobile top-off services, and gift cards.

Payments Backend and Infrastructure: Companies centered around payment issuers/acquirers and the infrastructure enabling payments. Examples include payment solutions for e-commerce merchants, online payment gateways, ACH, direct deposits, and payment back-ends for mobile apps.

Personal Finance: Companies that provide ways for consumers to manage their personal finances. Examples include tools for tracking expenses, managing a budget, addressing wrongful credit card charges, and optimizing credit card rewards.

Point of Sale Payments: Companies centered around payment acquirers, providing physical payment solutions for brick-and-mortar businesses and organizations. Examples include mobile point-of-sales (POS) systems and POS innovations (e.g. QR code, palm scanners).

Retail Investing: Companies that provide new ways for consumers to invest in various securities. Examples include theme-based investments, crowdsourced investment expertise, unbiased algorithmic investment advice, and investment social networks.

Small and Medium Business Tools: Companies that offer solutions that help small and medium sized businesses manage their finances. Examples include tools for taxes, payroll, invoicing, and accounting.

We are currently tracking 2,277 Fintech companies in 16 categories across 64 countries, with a total of $73 Billion in funding. Click here to learn more about the full Financial Technology market report.

Financial Technology Activity by Selected Investors – Q3 2017

The following graph summarizes investor activity in the Financial Technology (Fintech) space. Please note these graphics are made using data through April 2017.

Fintech Investor Activity Q3 2017

The above analysis summarizes the total number of investment rounds Fintech investors participated in, and the number of unique companies funded by selected investors. Major investors into the space include Accel Partners, Sequoia Capital, YC, 500 Startups, and Index Ventures.

We are currently tracking 2,276 Financial Technology companies in 16 categories across 64 countries, with a total of $72 Billion in funding. Click here to learn more about the full Financial Technology market report.

Financial Technology Exits by Category and by Year – Q3 2017

The following two graphs show exit activity in the Financial Technology sector. The graphics include data through April 2017.

Exit Activity by Category in Financial Technology
Exit Activity by Category in Financial Technology

The above graph summarizes the number of exits (acquisitions and IPOs) in each Financial Technology category. The Payments Backend category is leading the sector with 30 acquisitions and 9 IPOs. The Personal Finance category follows behind with 33 acquisitions and 2 IPOs.

Exit Activity by Year in Financial Technology
Exit Activity by Year in Financial Technology

The above graph summarizes the number of exits (acquisitions and IPOs) in Financial Technology by year. 2016 leads the sector with 55 acquisitions and 7 IPOs. 2015 follows behind with 40 acquisitions and 3 IPOs.

We are currently tracking 2271 Financial Technology companies in 16 categories across 64 countries, with a total of $71.9 Billion in funding. Click here to see the full Financial Technology market report.

Venture Investing in Financial Technology through Q3 2017

The following graphs highlight venture investing trends into the Financial Technology sector. The graphics include data through April 2017.

Fintech Venture Investing Q3 2017

The above graph compares the total venture funding in each Fintech category to the number of companies in the category. The Consumer Lending category leads both metrics, with around $18B in funding and about 300 startups.

Fintech Category Average Funding Q3 2017

The above analysis summarizes the average company funding in each Fintech category. The Consumer Lending category leads the sector with just over $95M in average funding per company, followed by the Payments Backend and Business Lending categories.

We are currently tracking 2,261 Fintech companies in 16 categories across 64 countries, with a total of $71B in funding. Click here to learn more about the full Financial Technology market report.